I have just enabled direct uploading of short videos to a post. The maximum files size is 51200 kb. Also there is now and Upload Video button down on the left bottom of the post area. Right next to the Attach files button.
Thumbnail after using the upload video button
Place your cursor where you want the video and then click on the Video button to the right of the small image.
Thumbnail after using the upload video button

Place your cursor where you want the video and then click on the Video button to the right of the small image.